Advisers are reluctant to recommend investment trusts to the bulk of their clients because of the level of risk involved, as well as the lack of availability on platforms, they have said.
Rowley Turton director Scott Gallacher (pictured) said the risk around the potential discount and premiums that investment trusts carry has made the investment vehicle less attractive for use with clients who may have a more ‘moderate' investment risk profile. As investment trusts are listed on the stock exchange, shares can trade at a premium or discount if the share price is higher or lower than the net asset value (NAV). "If the trust is unpopular its share price can then become less than the net asset value," Gallacher said. "Equally, if you end up with the trust being quite popul...
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